The Federal Reserve gave the green light Wednesday to major U.S. banks to raise dividends and buy back shares, deeming they have a sturdy enough financial foundation to withstand a major economic downturn. But the Fed gave Bank of America only conditional approval because of what were seen as weaknesses in its plans dealing with risks and possible losses. The central bank also rejected plans by the U.S. divisions of two European banks, saying their planning for financial risks is inadequate. Those divisions belong to Germany's Deutsche Bank and Spain's Santander. The Fed approvals announced Wednesday were the result of its "stress tests" — an annual check-up of...

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The Federal Reserve gave the green light Wednesday to major U.S. banks to raise dividends and buy back shares, deeming they have a sturdy enough financial foundation to withstand a major economic downturn. But the Fed gave Bank of America only conditional...

All of the nation's 31 largest banks are adequately fortified to withstand a severe U.S. and global recession and keep lending, the Federal Reserve said Thursday. Results of the Fed's annual "stress tests" show that as a group, the 31 banks...